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’’’RAF^IC  club?. 


The  subject  assigned  me  is  that  of  Traffic  Clubs  and  I  have 
assumed  that  it  was  expected  I  should  present  some  reasons  for  the  ex-* 
istence,  as  vrell  as  some  channels  of  usefulness,  of  these  organizations. 

Parenthetically,  we  must  agree  that  in  thia  busy  world  there 
is  little  chance  for  existence  and  none  for  survival  of  such  agencies 
unless  they  supply  some  need  of  the  hour  in  helping  to  solve  the  prob¬ 
lems  of  our  times#  And  what  greater  problems  have  we  than  those  of  traf¬ 
fic  and  transportation?  -  In  that  they  affect  directly  or  indirectly, 
every  phase  of  commercial  develop/ment ,  whether  in  providing  an  outlet 
for  nature *s  production  of  raw  material  or  a  market  for  the  finished 
product  of  man’s  ingenuity  in  manufactures  whether  in  fixing  the  value 
and  income  of  the  soil  or  of  the  securities  in  which  our  savins  and 
accumulations  are  invested;  of  vital  importance  to  all  enterprise  having 
for  i t  s  o  b  j  e  e  t— fc  he  dev  elopement  of  the  unlimited  resources  of  our  Kation* 

How  essential  therefore  that  the  interests  of  the  carriers 
should  receive  the  thoughtful  and  serious  consi deration  of  all  our  me ,, 
of  affairs  and  should  be  afforded  the  fostering  protection,  as  well  ns 
made  subject  to  the  prudent  and  conservative  regulation,  of  our  Govern¬ 
ment  « 

It  is  most  desirable  as  a  means  to  this  end  that  th©  two  in¬ 
terests  most  immediately  and  actively  identified  with  braee  traffic, 
should  establish,  by  mutual  effort  a  platform  upon  which  they  can  dis¬ 
cuss,  in  the  liffhtof  personal  acquaintance  and  friendly  relations,  the 
problems  which  are  ever  present  and  which,  from  the  very  nature  of  things, 
must  constantly  arise# 

In  this  I  think  we  find  a  large  measure  of  Justification  for 
the  existence  of  the  Traffic  Club  and  of  which  your  organization  is  an 

honorable  example# 

Further  Justification,  however,  is  to  be  found  in  the  fields 
Of  usefulness  to  be  served#  That  which  I  regard  as  first  in  importance 
is  the  opportunity  to  create  and  cultivate  the  spirit  of  fraternity  and 
which  has  been  recognized  throughout  all  the  world’s  history  as  a  basic 
principle  of  all  co-operative  progress,  in  that  it  1b  the  inspiration 
of  all  unity  of  interest,  of  aim  and  of  effort# 

Common  Characteristics  and  common  interests  are  the  foundation 
principles  of  all  oo-operation,but  it  is  oflly  in  identity  of  interest 
that  co-operation  becomes  complete#  assuredly,  as  shippers  and  represen¬ 
tatives  of  the  carriers,  we  have  common  characteristics  and  common  inter¬ 
ests,  and  while  we  may  not  always  appear  to  have  an  identity  of  inter¬ 
est  -  it  sometimes  appearing,  in  the  heat  of  complaint  and  of  controversy, 
to  be  the  opposite,-  I  firmly  believe  that  in  the  long  run  there  is  to 
be  in  the  principle  of  success  or  failure,  prosperity  or  the  re**?-* 
complete  -irden^tlf icatlon  of  interest  between  the  carrier  and  the 
hy?  Because,  in  final  results  what  builds  up  the  one  builds  up  the  other 
and  what  destroys  the  one  destroys  the  other  2  It  is  th©  principle  of 
* I  bold  and  am  held.” 


It  should  be  remembered,  however,  that  there  is  nothing  in  this 
which  Interferes  with  liberty  of  action,  except,  that  just  as  liberty  of 
law  is  the  result  of  law,  and  not,  as  many  suppose,  of  the  absence  of  law, 
so  is  economic  and  commercial  liberty  the  result,  instead  of  the  absence, 
of  obligation#  It  is  freedom  of  action,  so  far  restrained  as  is  necessary 
and  expedient  for  the  general  advantage  or  good  of  the  whole#  And  just 
here  we  think  will  arise  the  greatest  problems  that  confront  us  in  ye«u 


'1 


'>  ■ 


-2- 


our  relation  of  shipper  and  carrier  and  which  only  wisdom  and 
good  Judgment 9 coupled  with  Justice  and  consideration,  can  solve#  They 
will  not  always  be  solved  without  misunderstanding  or  conflict#  Ignor¬ 
ance,  selfishness  and  hasty  conclusion  will  sometimes  influence  both 
sides  and  difference  of  op  inion, based  on  honest  Judgment,  is  bound  to 
oocur#  But  these  issues  must  be  met  and  how  preferable  that  we  should 
seek  to  meet  them,  whenever  possible,  on  a  platform  such  as  that  of  the 
Traffic  Club,  rather  than  in  the  arena  of  political  agitation  and  of 
adverse  legislation,  which  are  bound  to  create  resentment  and  friction 
and  set  in  motion  waves  of  reprisal  and  injury  which  quickly  pass  be¬ 
yond  the  power  of  either  interest  to  check  or  control. 

There  must  of  course  be  a  more  conclusive  method  of  adjustment 
of  such  differences  than  can  be  supplied  by  the  Traffic  Club  and  this 
we  have  in  our  present  Interstate  Commerce  Law, which  I  believe  is  now 
proving  Itself  equal  to  an  enforcement  of  the  only  fundamental  princi¬ 
ples  of  regulation  of  the  carriers  within  economic  lines,  namely  of 
integrity  of  conduct  and  of  just  and  reasonable  charges  without  discrim¬ 
ination# 

'’’his  law,  ©specially  in  its  enforcement  of  open  and  equal 
rates  to  all  without  di scrimination,has  X  believe  proved  a  blessing  to 
both  the  carrier  and  the  shipper#  hat  it  may  lack  in  elasticity  of 
rate  adjustment  it  more  than  supplies  in  security  and  confidence  by 
an  assurance  of  an  open  showing,  a  fair  field  and  no  favor# 

I  also  believe  that  this  law  i3  being  administered  fairly 
and  ably  by  men  who  have  risen  to  their  high  privilege  of  dealing 
fairly  with  the  carrier  as  well  as  the  shipper.  Tould  that  more  of 
our  legislators  better  understood  and  more  fully  exemplified  toward 
the  carriers  the  spirit  of  fairness  which  is  duo  them  and  which, for 
economic  reasons, must  in  the  ehd  be  the  only  right  method  of  promoting 
the  public’s  best  interests#  e  commend  to  our  statemen  and  legislators, 
as  well  as  to  all  thoughtful  men,  the  utterance  of  Chairman  Knapp  in 
his  recent  address  before  the  American  Academy  of  Political  and  Social 
Science*  It  comes  from  one  who,  by  reason  of  his  ability,  position  and 
experience,  is  undoubtedly  as  well  qualified  as  anyone  in  official  posi¬ 
tion  with  the  Government  to  speak  with  intelligence  and  authority  on 
the  subject*  e  quote* 

"The  passing  of  a  generation,  as  It  were,  the  railroad  and 
the  steamship  have  transformed  the  whole  of  Industrie  1  and  social  life# 
"•hey  have  enriched  every  occupation,  given  added  value  to  each  pursuit, 
added  to  the  means  of  human  enjoyment , and  made  our  vast  wealth  possible. 
At  once  the  greatest  achievement  and  greatest  necessity  of  our  modern 
civilisation;  but  we  do  well  to  remember  that  this  marvelous  achieve¬ 
ment  has  been  aceomi>li shed  by  private  enterprise  and  private  capital, 
and  that  we  must  look  —  we  certainly  should  look  —  to  that  same  source 
for  Its  further  and  adequate  development# 

Par  distant  be  the  day  when  any  thoughtful  man  will  seriously 
contemplate  a  different  national  policy,  but  if  we  rely,  as  we  should, 
on  private  enterprise  and  private  capital  to  sufficiently  incroase  our 
transportation  facilities,  we  must  make  that  primary  vocation  so  attrac¬ 
tive  in  its  opportunity  and  its  responsibility  that  it  v;121 
its  management  the  best  and  ablest  men  the  Ration  produces,  and  be  •>*._ 
ficlently  lucrative  to  insure  the  necessary  investment  of  money  to  real¬ 
ise  our  further  needs#  In  a  word,  we  need  our  best  men  in  this  primary 
business,  and  a  very  large  amount  of  money,  to  make  it  adequately  suc¬ 
cessful#  This,  in  a  word,  simply  means,  as  I  take  it,  that  whatever  may 
be  our  national  or  state  x:>olicy,  what  prohibitions  may  be  enacted  or 
privileges  restricted  there  must  be  the  opportunity  to  charge  rates  which 
will  give  sufficient  earnings  to  make  the  business  fairly  profitable  and 
to  attract  sufficiont  capital  for  Its  added  extension#" 

Cannot  this  be  accepted  as  a  fair  and  just  setting  forth  of 
the  obligation  of  the  public  to  the  carrier,  subject  only  to  the  oondi- 


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tion  of  law  that  there  shall  be  on  the  part  of  the  carrier.  Integrity 
of  conduct,  reasonable  and  Just  charges  and  freedom  from  discrimination. 

The  greatest  obligation,  in  my  opinion,  resting  upon  the  car¬ 
riers  4s  their  contribution  to  the  continued  development  and  prosperity 
of  our  country,  is  adequate  facilities  and  prompt  and  efficient  service. 
It  la  not,  as  I  understand  it,  so  much  a  question  with  the  average  ship¬ 
per  as  to  Just  the  amount  of  the  charges  on  his  shipments,  as  it  is  the 
character  of  the  service  which  he  receives  and  the  relation  of  his 
freight  chargds  to  those  of  his  competitors. 

The  spirit  of  our  business  men,  as  well  as  our  people  in 
general,  has  always  been  that  of  willingness  to  pay  well  for  that  which 
is  superior,  on  the  well  known  theory  that  superior  quality  necessarily 

involves  extra  cost. 

My  greatest  ambition  for  the  railways  of  this  country  is  to 
•ee  them  at  their  best  physically,  fully  equipped  and  ready  to  make 
good  any  reasonable  demand  that  may  be  made  upon  them  to  fulfil  the 
obligation  of  service,  especially  when  the  time  comes  again  of  busy 
factories  and  loaded  oars  -  as  it  surely  will* 

Aside  from  the  platform  of  common  interest,  the  most  influ¬ 
ential  factor  in  the  promotion  of  a  right  and  harmouious  relation  be¬ 
tween  the  shipper  and  carrier  contemplated  by  the  Traffic  Club,  is  thut 
Of  promoting  a  better  personal  acquaintance.  This  is  most  happily  ex¬ 
pressed  in  the  couplet  which  prefaces  your  book  of  Memberships 

"If  I  knew  you  and  you  knew  me, 
if  both  of  us  could  clearly  see 
And  with  an  inner  sight  divine. 

The  meaning  of  your  heart  and  m ine- 
I’m  sure  that  we  would  differ  less. 

And  clasp  our  hands  in  friendliness. 

Our  thoughts  would  pleasantly  agree. 

If  I  knew  you  and  you  knew  me.  n 

The  value  of  the  personal  equation  and  of  friendly  relationship 
as  the  ground  for  reaching  mutually  satisfactory  conclusions  is  too  well 
understood  to  need  amplif ieat Ion, but  I  would  like  to  refer  under  this 
head  to  a  letter  from  a  shipper  recently  published  in  one  of  the  Railway 
T  eviowa,  and  In  which  he  advanced  the  idea  that  there  was  more  or  less 
of  a  conviction  In  the  minds  of  the  public  that  there  was  an  assumption 
of  superiority  on  the  part  of  the  carriers  and  their  agents  in  dealing 
with  the  public. 

Personally  I  think  there  is  no  Just  ground  for  this  in  our 
time*  The  impression  doubtless  arises  from  the  fact  that  it  rests  with 
the  carrier  to  establish  certain  rules  to  govern  its  vast  army  of  em¬ 
ployees  and  which  necessarily  become  arbitrary  because  of  the  impossibil¬ 
ity  of  giving  to  each  employee  authority  to  adjust  each  matter  of  con¬ 
troversy  on  its  merits.  For  manifest  reason*,  he  must  in  moot  cases 
enforce  the  rule  and  leave  the  adjustment  to  higher  officials. 

In  this  respect,  -  with  its  wide  spread  territory,  its 
positive  regulations  for  enforcement  of  legal  requirements  and  those 
of  safety,  its  multiplicity  of  rules  and  regulations,  its  great  num¬ 
ber  of  employees  with  varying  capacity  -  tho  carrier  is  very  differently 
situated  from  the  average  business  firm, which  as  a  rule  has  some  one  in 
authority  upon  whem  toe  ground  to  settle  differences  with  its  customers 
when  they  arise.  Hence,  the  seeming  arbitrary  character  of  the  carrier* 
rule  Is  but  a  necessity  of  the  situation  and  it  seemj  difficult  to  se * 
how  it  can  be  avoided. 


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lii  our  opinion,  its  unpleasant  and  objectionable  effect  can 
be  cnt irelv  overcome  by  the  exemplification  by  the  carriers*  agents 
of  the  spirit  of  courtesy  and  friendliness  which  the  Traffic  Club  seeks 
to  govern  the  relation  between  its  members#  Next  to  its  ability  to 
fully  qualify  in  service.the  beat  characteristic  that  any  carrier  can 
possess  i s  that  of  a  courteous  and  friendly  personality  of  its  officials 
and  other  employees  who  come  in  contact  with  the  public#  3uch  an  influ¬ 
ence  does  not  end  with  that  company,  but  it  makes  for  the  welfare  of 
carriers  in  general. 

In  conclusion,  permit  me  t o  suggest,  that  In  my  opinion  the 
social  entertainment  side  of  the  Traffic  Club  should  be  Incidental# 

It  will  prove  but  a  rope  of  sand  if  depended  upon  to  promote 
membership  and  Interest.  Hence  there  should  be,  as  a  primary  feature 
of  all  regular  meetings  opportunity  for  consideration  and  discussion 
Of  traf f id~^questions,  so  as  to  stimulate  a  desire  for  a  greater  and 
more  accurate  knowledge  of  traffic  affairs  as  well  as  to  promote  uni¬ 
form  understanding  and  unity  of  conclusion  with  respect  there,  and  to 
which  liberty  of  expression  and  eandid  statement  are  always  essential. 


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